[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.20609 and 1.21007.

-        Support line of 1.19321 and 1.18923.

Commentary/ Reason:

  1. The euro slipped to $1.19587, to a new 3-month low, following an about 1% slump for the last 2 day.

  2. Rising Treasury yields bolstered demand for the dollar. Even though Powell reiterated a commitment to maintain ultra-easy monetary policy, some analysts still worried rising Treasury yields could herald higher borrowing costs, thereby limiting the fragile U.S. economic recovery.

  3. An easing of the pandemic in the U.S. is hawkish for Fed policy and supportive for the dollar as the 7-day average of new U.S. COVID-19 infections fell to the lowest in 4-1/4 months.

  4. A mixed Eurozone economic data didn’t help the euro decline. Eurozone Jan retail sales reportedly fell weaker than expectations to its biggest decline in 9 months. Conversely, the Eurozone Jan unemployment rate was unchanged.

EURUSD

 

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.93288 and 0.93727.

-        Support line of 0.91870 and 0.91431.

Commentary/ Reason:

  1. The dollar was higher against the Swiss franc on Friday, to trade at 0.92877, extending the gains for the third straight day.

  2. The bout of higher U.S. bond yields undermined low-yielding currencies, including the safe-haven Swiss franc.

  3. Traders continued to snap up dollars as they bet on a U.S. economy outshining its peers in the developed world in coming months. Fiscal stimulus fuelled market expectations for a rapid recovery, with President Joe Biden close to passing a US$1.9 trillion spending package.

USDCHF

 

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.40156 and 1.40687.

-        Support line of 1.38438 and 1.37907.

Commentary/ Reason:

  1. The British pound steadied against the dollar on Thursday, after a 0.40% slump overnight, to stood at $1.3998 on the day.

  2. The dollar on Thursday garnered support from a rise in T-note yields after the 10-year T-note yield rose to 1.547%, modestly below last Thursday's 1-year high of 1.609%.

  3. U.S. Federal Reserve Chair Jerome Powell on Thursday repeated his pledge to keep credit loose and flowing until Americans are back to work.

  4. The sterling meanwhile has been somewhat positive as vaccinations roll out rapidly across the UK, while the government also now eyeing its way out of its third national lockdown.

-        Britain's Brexit deal with the EU has also removed some pressure from the currency.

GBPUSD